How To Write A Business Plan: Part 1

let it be your compass

A business plan is a dynamic resource that can serve as a reference tool in tandem with your business development and growth. It can, and should, steer you in the right direction when your venture encounters the occasional obstacle and complication. In addition to pure function, a business plan should be a showcase for your business with a target audience in mind, not just a nominal document devised to appease a potential investor. Cast your net beyond the VC firm and angel investor. Your audience could also consist of a commercial bank, distributor, business partner, and executive talent as well.

The formulation of a business plan can be a rather daunting proposition for anyone, let alone an executive with experience. A haphazard and spontaneous approach to a new venture is a classic trait of an entrepreneur and as a result, many neglect to prepare a plan. But when you fail to plan in business, you plan to fail. A business plan will augment the chance that you will remain viable down the road. Here are two sources to help you:

Integrated business plan software: The market has a host of them available, the best of which is Business Plan Pro 2002. The one problem to be aware of is the fact that integrated software can produce a rather generic business plan that could raise a red flag with a VC manager.

Professional consultant: Good for general counsel but not recommended for comprehensive guidance on how to write the business plan. You and your team know your venture best. Plus the considerable expense could eat into your initial investment.

justify everything with data

The most effective business plan will provide your audience with the outlook for success, profit and potential. You should prepare the document as you would any other crucial business milestone. In fact, it should be your first. To begin, you need to glean accurate data to authenticate any optimistic claim you plan to make. Your information has to be persuasive and harder still, legitimate. Once you have everything together, you can begin to write your business plan.

Tune in next time when I will delve into detail about the structure of a sound business plan.